According to Future Market Insights, the e-commerce market is expected to secure US$ 11.5 trillion in 2023 to while expanding at a CAGR of 19%. The market is likely to hold a value of US$ 65.5 trillion in 2033.
The market for e-commerce is supported by:
Streamlining the buying process
Creation of product listings and stores
Increasing efficiency and reducing costs
An affordable marketing and advertising solution
A customer-friendly approach
Price and product comparison platform
The proliferation of smart devices
Modernization of advanced technologies
A growing logistics business
Intensification of warehouses
Growth in internet access
Return policies for products
A rise in the popularity of buy now pay later
Simple and easy financial payment process
Data Points
Key Statistics
Estimated Base Year Value (2022)
US$ 10 trillion
Expected Market Value (2023)
US$ 11.5 trillion
Anticipated Forecast Value (2033)
US$ 65.5 trillion
Projected Growth Rate (2023 to 2033)
19% CAGR
With the rapid development of technology and the increasing use of smartphones, e-commerce has evolved into a convenient and accessible market. A major investment is being made by brands in e-commerce platforms, ensuring seamless shopping experiences for their customers in the market. Furthermore, emerging technologies like artificial intelligence, augmented reality, and voice commerce are being developed to make shopping online more enjoyable for consumers in the market.
Developing new technologies and implementing digital marketing strategies are making e-commerce a very promising industry for the future. Due to the rapid development of e-commerce platforms and technologies, companies are aiming to maximize their efficiency and costs in the market.
Online businesses benefit from streamlined operations, better customer service, marketing products, and improved team collaboration. Through the use of AI-powered e-commerce platforms, retailers have the ability to present their products to customers to increase revenue-per-customer, increase customer engagement, and offer them the products they are most likely to purchase.
The e-commerce industry provides customers with the ability to customize their shopping experience. Data analytics lets businesses tailor their offerings to individual customers by gathering information about their preferences and behaviors. As a result, customers are more likely to be satisfied and loyal, leading to increased sales and profits in the market.
The Asia Pacific region has experienced rapid growth in e-commerce industries. E-commerce plays a significant role in driving economic growth and development in the region, with many countries in the region experiencing an increase in the number of online shoppers and businesses. In many emerging markets, such as India and China, increasing demand for internet access and disposable incomes have influenced the buying patterns of consumers to grow the market.
Online payment options are being offered by several e-commerce businesses in the region, simplifying the purchasing process for their customers in the market. In the future, the e-commerce market will also flourish with the growth of logistics and warehouse operations in the market. In the wake of Covid-19, there has been a significant rise in demand for contactless deliveries on the market.
The International Telecommunication Union has released new data revealing significant growth in internet users during the pandemic, which in turn has led to a boom in last-mile delivery services. According to the report, 54% of the world's population, or 4.1 billion people, had Internet access in 2019. In 2021, the number of applicants increased by 63% over the previous year.
As a way to boost sales of their products, companies have implemented autonomous and drone deliveries to increase e-commerce sales in the market. Several social media platforms are rapidly entering the e-commerce market, including Instagram, Facebook, and Pinterest. It is expected that the seamless integration of social commerce will take place in 2023, and this will lead to growth in the market.
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E-Commerce Market for FMCG Market Overview
Digitalization and internet penetration have led to a change in the shopping patterns of customers. Customers have made a transition from brick-and-mortar stores to e-commerce i.e. online shopping, as online shopping provides enhanced services and convenience.
The increasing adoption of the e-Commerce market for FMCG is going to impact the retail omnichannel commerce market, as the software links the e-Commerce platform with the brick-and-mortar stores.
The real-time exchange of data among different devices creates large volumes of data that is available on public and private network connections. IoT is creating opportunities for retailers to offer technologically advanced products. All devices (laptops, PCs, smartphones, wearables, etc.) that are responsible for communication are also using IoT-based platforms in smart cities, which is expected to propel the growth of the e-Commerce market for the FMCG sector.
Innovations in IT are fueling the growth of retail digitalization. Providing retailers with a platform to satisfy consumers' expectations has been the key motivation behind these technological innovations. The products offered by retailers are available on every channel.
These channels are connected to each other over the Internet, via an omnichannel platform. The seamless experience provided by an e-commerce platform is the primary reason for the increase in the usage of e-commerce for FMCG.
Impact of COVID-19 Pandemic Outbreak on E-Commerce Market for FMCG Market
Due to disruptions caused in the supply chain, the e-commerce market for FMCG declined by 5-7% in Q1 and Q2 of 2020. The lockdown enforced by governments of many countries has resulted in delivery delays or complete cancellation of orders. Several other challenges have emerged during this pandemic such as product safety concerns, inflating prices to irrationally high levels, cybersecurity concerns and deceptive practices.
However, to restrict the flow of coronavirus and to maintain social distancing and other measures led customers to shift towards online shopping websites/sites and pay through online modes of payments. Thus the impact of the pandemic outbreak on e-commerce market for FMCG will promote the further progress of new policies for online purchases and supply. Therefore the market is anticipated to recover and grow at 2X by the end of Q4 2020.
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E-Commerce Market for FMCG Market: Drivers and Restraints
Introduction of Subscription Based Business Model Is Attracting Small and Medium Enterprises to Adopt E-commerce
With the development of SaaS-based deployment of e-commerce software, subscription based business have pioneered and is effective for both customer and business. Subscription based business model enables hassle free payment options for the services rendered.
Then user can opt for subscription of monthly, quarterly or yearly plan based on the requirement of business. Recurring billing enables online billing and eliminates the repetitive manual payments for the services. An inevitable benefit for business is that the subscription based model increases revenue while building upon the business and customer relationships.
Thus with rising adoption of subscription based model, number of stores getting online are increasing significantly. Thus increasing number of stores on e-commerce platform is anticipated to boost demand of e-commerce market for FMCG, throughout the forecast period.
Retailers are offering features such as order online and pick up in-store by incorporating retail omni-channel platforms in order to increase their sales. With retail omni-channel platforms, retailers are able to satisfy customers seeking digital services and offerings. Some of the leading retailers who have adopted retail omni-channel platforms are Apple, Walmart, and Macy. Thus it is another factor fueling the growth of the e-commerce market for FMCG.
Option of Switching Vendors Are High Due To the Availability of Multiple Vendors in the Market
Maximum customers subscribe e-commerce platform for one month or quarterly plans and very few customers go for annual subscription. As a result, even though if the subscription number is high, there is no assurance that the vendors can retain those customers. The competition in the e-commerce market for FMCG is very high and the customers have multiple options to choose the vendor.
Though subscription based models are the source of high revenue generation, it is always associated with a high risk factor. Customers can easily switch from one vendor to another. Thus it is a major factor hindering the growth of e-commerce market for FMCG.
E-Commerce Market for FMCG Market: Competition Landscape
Examples of some of the market participants in the global e-commerce market for FMCG market identified across the value chain include
Shopify, Inc.
SAP SE
Oracle Corporation
Magento Commerce (Adobe)
Salesforce.com, Inc.
Apttus
Intershop Communications AG
BigCommerce
WooCommerce
Sitecore
Episerver
Kentico Software
Unilog Content Solutions Pvt. Ltd.
Following are some key strategies and developments in the global e-commerce market for FMCG market:
In May 2019, PVH Asia Limited, a wholly owned subsidiary of PVH Corp. and one of the world’s largest apparel companies, selected Oracle Retail to modernize its customer experience and store technology. Its iconic brands include Calvin Klein and Tommy Hilfiger. PVH Asia will implement Oracle Retail Xstore and Oracle Retail Customer Engagement to connect with the next generation of consumers.
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E-Commerce Market for FMCG Market: Regional Outlook
North America is the fastest growing e-commerce market for FMCG owing to the high rates of internet penetration in this region. East Asia is anticipated to follow North America in terms of sales growth, due to increasing number of startups and small businesses in this region contributing towards the growth of the e-commerce market for FMCG. North America and East Asia together holds around 50% share of the global e-commerce market for FMCG.
The E-Commerce Market for FMCG market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.
The report covers exhaustive analysis on
E-Commerce Market for FMCG Market Segments
E-Commerce Market for FMCG Market Dynamics
E-Commerce Market for FMCG Market Size
Supply & Demand
Current Trends/Issues/Challenges
Competition & Companies Involved in the Market
Technology Landscape
Value Chain of the Market
Market Drivers and Restraints
Regional analysis includes
North America (USA, Canada)
Latin America (Mexico, Brazil, Rest of Latin America)
Europe (Germany, Italy, United Kingdom, Spain, France, Nordic countries, BENELUX, Russia, Rest of Europe)
East Asia (China, Japan, South Korea)
South Asia and Pacific (India, Malaysia, Indonesia, Singapore, Australia & New Zealand, Rest of South Asia and Pacific)
Middle East and Africa (GCC Countries, Turkey, Northern Africa, South Africa, Rest of MEA)
E-Commerce Market for FMCG Market: Segmentation
The e-Commerce Market for FMCG market can be segmented on the basis of type, platform, and region.
